EUR/USD poised for continued downside pressure
James Chen October 27, 2014 5:04 PM
<p>EUR/USD (daily chart shown below) has given back a significant portion of its gains that were made during the rebound that occurred in the first […]</p>
EUR/USD (daily chart shown below) has given back a significant portion of its gains that were made during the rebound that occurred in the first half of October.
After a sharp and sustained downtrend for the past five months, that rebound brought the currency pair up from a new two-year low of 1.2500 in early October to a high of 1.2886 in mid-October.
EUR/USD then pivoted back to the downside on touching its 50-day moving average. A subsequent re-test of the same moving average also resulted in a failure to sustain upside momentum and another swift turn to the downside.
Having failed thus far to extend its rebound, the currency pair continues to be under substantial downside pressure and the overall bearish trend continues to remain strongly intact.
Currently, the key downside price target remains at the noted 1.2500 low. The next major support targets below that reside around the 1.2450 level, last hit over two years ago, followed by the 1.2300 level.
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